Opening balance of cash at bank 28100 outflow of cash

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Opening balance of cash at bank 28100 Outflow of cash: Add : cash inflows : Redemption of debentures 50000 Issue of shares 60000 Payment of dividend 12000 Decrease in inventory 4200 Addition to buildings 78000 Decrease in debtors 9700 Expenses prepaid 3000 Increase in creditors 20000 143000 Operating profit 41000 Closing balance of cash at bank 20000 163000 163000 Cash in flow from operating profit: Net profit for 2016 27050 Add: non fund items already debited to Profit & loss account: Sundry expenses prepaid 3950 Provision for Depreciation 10000 13950 41000 FIXED ASSETS ACCOUNT Rs. Rs. To balance B/d 152000 By accumulated depreciation 30000 To bank 78000 230000 By balance c/d 200000 230000 ACCUMULATED DEPRECIATION A/C Rs. Rs. To fixed assets 30000 By balance b/d 60000 To balance c/d 40000 By profit & loss a/c 10000 70000 70000
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120 Illustration 4 . The comparative balance sheets of a company are given below 2015 2016 2015 2016 Rs. Rs. Rs. Rs. Share capital 35000 37000 Cash 4500 3900 Debentures 6000 3000 Book debts 7450 8850 Creditors 5180 5920 Stocks 24600 21350 Provision for doubtful debts 350 400 Land 10000 15000 Profit and loss 5020 5280 Goodwill 5000 2500 51550 51600 51550 51600 Additional information available is: 1. Dividends paid amounted to Rs,1750 2. Land was purchased for Rs.5000 and amount provided for the amortization of goodwill amounted to Rs,2500 3. Debentures were repaid to the extent of Rs.3000 Prepare a cash flow statement Solution: CASH FLOW STAEMENT Cash inflow Rs. Cash balance on 1.1.2015 4500 Issue of shares 2000 Cash from operations 7150 13650 Cash outflow: Rs. Purchase of land 5000 Payment of dividend 1750 Repayment of debentures 3000 Cash balance in 31.12.2007 3900 13650 .
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121 Workings: Cash from operations Rs. Profit for 2015 5280 Profit for 2016 5020 Add: 260 Dividend 1750 Goodwill written off 2500 Decrease in stocks 3250 Increase in provision for doubtful debts 50 Increase in creditors 740 8550 Less: increase in creditors 1440 Cash from operation 7150 Illustration 5 : From the following particulars prepare cash flow and fund flow statement of XYZ ltd 1 st Jan 2015 Rs. 31 st Dec. 2016 Rs. Cash 5000 4000 Debtors 40000 45000 Stock 30000 25000 Land 30000 40000 Buildings 50000 55000 Machinery 70000 80000 225000 249000 Current liabilities 35000 40000 Loan from ‘A’ 25000 Bank loan 40000 30000 Capital 150000 154000 225000 249000 During the year, XYZ brought an additional capital of Rs.10000 and his drawings during the year were Rs.31000 Provision for depreciation on machinery: opening balance Rs.30000 and closing balance Rs.44000 No depreciation need be provided for other assets
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122 Solution CASH FLOW STATEMENT For the year ended 31 st December 2016 Rs. Rs. Opening balance of cash 5000 Purchase of land 10000 Additional capital 10000 Purchase of buildings 5000 Decrease in stocks 5000 Purchase of machinery 20000 Increase in current liabilities 5000 Increase in debtors 5000 Repayment of bank loan 10000 Loan from ‘A’ 25000 Drawings 31000 Cash : operating profit 35000 Closing balance of cash 4000 85000 85000 Workings: LAND ACCOUNT Rs. Rs. To balance b/d 30000 By balance c/d 40000 To cash purchase (balancing figure ) 10000 40000 40000 BUILDINGS ACCOUNT Rs. Rs. To balance b/d 50000 By balance c/d 55000 To cash purchase (balancing figure ) 5000 55000 55000 MACHINERY ACCOUNT Rs. Rs.
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